Regulatory Alerts2021-08-17
Update to Proper Conduct of Banking Business Directive no. 448 on Online Bank Switching
The Banking Supervision Department of the Bank of Israel issued an update to Proper Conduct of Banking Business Directive no. 448 to implement legislative amendments requiring banks to facilitate online switching of customer financial activity. The updated directive clarifies obligations for old and new banks regarding the transfer of accounts, checks, and credit authorizations, while mandating enhanced customer disclosures and consent procedures. Specific provisions regarding customer notification, routing periods, and check handling are subject to phased implementation timelines ranging from three months to two years after the law's effective date.
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